First-Time Borrowers: No Minimum CIBIL Score Required
The Ministry of Finance has announced an important update for first-time borrowers in India: banks cannot deny loans based solely on a poor or absent CIBIL score. Speaking in Lok Sabha, Minister Pankaj Chaudhary emphasized that the RBI supports this move, encouraging banks to evaluate applicants based on a broader set of criteria, not just credit scores. However, banks are still required to perform background checks to assess creditworthiness. This change opens up opportunities for many who previously struggled to secure loans, fostering financial inclusion and growth.
